Fitch puts Abbott on negative watch

Fitch Ratings said it placed Abbott Laboratories' AA- issuer default, bank loan and senior unsecured debt ratings and F1+ commercial paper rating on Rating Watch negative following Abbott's announcement that it will acquire Kos Pharmaceuticals, Inc. for $3.7 billion, net of cash at Kos.

The agency said that the company's credit profile will be further pressured by increased leverage necessary to complete the purchase of Kos, and Abbott's current capital structure is already carrying the extra debt burden that was needed to consummate the purchase of Guidant Corp.'s vascular intervention and endovascular solutions business in May. Fitch anticipates a one-notch downgrade.

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